Memorandum, State Department Summary of Telegrams

DEPARTMENT OF STATE OFFICE OF THE SECRETARY WASHINGTON June 17, 1946 TOOD SUMMARY OF TELEGRAMS COUNCIL OF Anticipating that the question of our holding equipment and 051 FOREIGN property of Hungary in the US zones in Germany and Austria MINISTERS will be brought up again by the Soviet Delegation, the HUNGARY Secretary requests that the War Department authorize our commanders to permit Hungarian representatives to enter our zones to identify Hungarian property and, when identified to the satisfaction of our commanders, to authorize the shipment of such property to Hungary. Ambassador Smith reports from Moscow that the USSR appears to 051 be engaged in an old-fashioned eastern European maneuver of a show of force USSR but does not believe that the Soviets have any actual intention at this time of availing themselves of extreme measures although the covert threat of such action may again appear during the Paris meeting of Foreign Ministers. Caffery 051 reports that the French are somewhat concerned by reports from Germany of large FRANCE this may reflect a Soviet desire to "impress the German people with Soviet concentration of Red troops in the Soviet zone of Germany. The French believe strength as compared with the military strength of the other occupying powers and also perhaps to engage in a little war of nerves." Austria's new idea for a possible solution of the South Tyrol by means of bilateral Austrian-Italian negotiations is in effect to denationalize the area as a whole, giving Italy certain rights and Austria others. 051 - DENMARK Rumors are circulating in Copenhagen that the USSR has offered a six year agreement to the Danes whereby the Soviets would acquire all Danish surpluses of agricultural products and industrial output; the USSR would pay in gold and supplies needed by Denmark. The Swedish Minister in Copenhagen says Sweden has rejected a Soviet offer to take for the next 10 years everything Sweden produces. 51 - GERMANY During further discussion in the Berlin Coordinating Committee of our proposal to create a quadripartite disarmament commission for Germany, the Soviet member exhibited unrelenting obstinacy in opposition to the examination of the economic-industrial phase of disarnament. USSR DECLASSIFIED E.O. 12065, Sec. 3-402 State Dept. Guideline, June 12, 1979 By NLT- He NARS, Date 11-12-to